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See below… Ecuador bits & pieces on the Ecuador Volcano plus bits and pieces on… a CPA who can help do US taxes in Ecuadorplus a reader who wants to swap a Miami condo for Ecuador real estate… plus how to get a $900 savings on an Ecuador airfare… and a real estate Ecuador question plus finally the best Ecuador airfare savings of all!

First see the last day of our offer on how to Reduce Stress and Create Opportunity in Ecuador.

Ecuador Bits & Pieces on the Volcano.

Gary, With this latest volcano shutting down the airport there are some questions I’m sure people would like to see addressed.

I had not heard a word.  When living in an area called “the valley of the volcanoes”  one does not get too excited about a eruption especially one that goes off regularly. Merri and I have been though many volcanic eruptions in Ecuador and they have all been non events.  Most are far from civilization so cause little human concern… but this volcano Tungurahua is in an area where the ash can be disruptive.  Years ago when Merri and I lived in a small village off the Ave. of the Volcanos, Tunguarahua was erupting nightly.  We could see it in the evening skies.

I sent a note to a number of our contacts in the area to see what was going on and was not surprised by the sang froid nature of the replies.  This reader was just in Banos just a short time ago and wrote:   I am In Spain today on my way to Brussels; but Banos does not seem too much affected although it seems that flights into Ecuador are affected.  The intensity of the eruption has already diminished… when I was in Banos 3 weeks ago, everybody was saying that Tungurahua had been too quiet for too long (3 months at least).

The Ecuador newspapers El Comercio reported on this eruption of Tungurahua.  The article outlines that the volcano erupted May 28 and a column of ash rose 10 km high.  The village of Bilbao was affected and its 53 residents were evacuated.

The article pointed out that this is the third time in four years that  (2006 and 2009) that this area has been affected.

The crops mostly corn and tomato in this immediate area are covered with a thin layer of dust.

There is decreased activity of the volcano by the next day and the activity of the Tungurahua volcano continues to decline.

According to the Geophysical Institute erupts little ash that falls around the crater, particularly on the eastern flank.

“The change in the eruption is due to the explosion last Friday. They uncovered the crater. There was a layer of volcanic material accumulated. This was ejected in the eruption on the morning of Friday. ” Yesterday, the ash that dropped the giant came to Guayaquil.

In Ambato, the morning was sunny and clear sky.

A news report from the Indian News outlined showed that Mama Tungurahua… this volcano has now been active for nearly 20 years and has again erupted.. The article said:   Two eruptions were felt at 8:47 and 11:00 AM, and provoked a great outpouring of ash that reached the provinces of Guayas, Los Rios, Chimborazo and Bolivar, as well as affecting cities like Baños, Penipe, Guayaquil and Babahoyo in Sierra and Costa. The Tungurahua began its activity in 1994 and had hit Baños in 1999.

This article reported that Guayaquil airport was affected for the first time because the winds were blowing south. This is important to note because after the Icelandic volcano tied up air traffic for such a long time, some readers asked what could happen to air travel if a volcano in Ecuador erupted continuously for many years. Tungurahua has erupted regularly now… for 20 years.  This volcano is between Quito and Guayaquil. A couple of times in these two decades, when the wind blew north… Quito airport was shut for a couple of days.

This time because the wind blew south Guayaquil airport was shut Friday May 29, 2010 but reopened Saturday May 30.

I wrote an extensive report on Ecuador volcanoes in January 2010. If you have further concerns read this at Ecuador Earthquake Facts & Figures

Ecuador Bits & Pieces a reader wants to swap a Miami condo for Ecuador property.

A reader just sent me this note.  Gary I have a water front 2/2 condo in Miami, I will be willing to trade it for a small hotel in Quito or a farm in Mindo (with a river) Ecuador.

Sorry for the delay, I had to get the pictures, the 2 bedroom 2 bath condo is located in Bay Harbor Islands, right behind the Bal Harbor Shops in Miami Beach.  It has all new appliances and it is about 1,000 feet in size. It is on the InterCoastal, walking distance to the beach, shops, restaurants, etc. The view  is the best.  This apartment was worth $500,000 before the downfall, today it is anybody’s guess, maybe 50% to 60% off.  Let me know if you have someone interested.  Best Regards,  Fabian

Ecuador Living subscribers can get the contact address at their password protected site here.

USA CPA can help with USA taxes in Ecuador.

Americans, regardless of where they live, must file taxes each year and may have tax liability. Some of the situations can be complicated.

Take for example our daughter who a dual US/UK national. She has not been resident nor worked in the US for over a decade. She currently works for the UN in Swaziland and is resident for tax purposes there, but of course files her US tax return also… though her income has always (barely been below the earn income abroad credit amount (I believe it is now $91,400) Previously she worked in the UK.

She leaves the UN to return to the UK in June and will receive approximately $7,500 of pension funds from her UN pension plan. She is allowed to
roll this into her UK pension without tax liability. However is she adds this to her salary and her relocation allowance she be above the $91,400 threshold.  She was wondering if this created any US tax liability.

A CPA Mark Jones, who has helped some of our readers in Ecuador, sorted this one out.

Gary,  I am not sure how the UK does its equivalent of a W-2.   For the US the amount she would roll this into her pension plan and would not show up as taxable income therefore not tax liability.  Mark

Be sure if you move to Ecuador to get a good accountant to help you keep your US taxes in order.

Ecuador Living subscribers can get the contact address at their password protected site here.

An Ecuador Real Estate Question

A reader sent this Ecuador real estate question:  Gary, real estate worldwide is looking at the edge of a cliff.  Why is Ecuador immune?  I am a retired stock and commodity (30 years in New York got out 2007 better to be lucky then smart) .  Thank you for your advice you are doing a wonderful job in your service.  Regards

My reply is: Ecuador real estate has benefited from a process I call equalization.  This reader like many is retired due to the 2007-2008 recession.  This recession saw the collapse of real estate prices in the US  in some areas 50%, 60%, even 70%  and more.

Some areas however in the US were not affected and were even helped as people moved from expensive high priced areas to areas where the cost of living was less.  For example we did not see a huge drop in prices in our part of North Carolina.

Ecuador gained from this same equalization. Real estate prices were already really low in Ecuador because of a huge recession in 2000.  They were just starting to recover when the 2007-2008 recession hit North America and Europe.  That recession pushed many residents out of North America to live for less in South America.  Ecuador as one of the least expensive and closest South American countries to Canada and the US… with a complete  infrastructure and good law and order has attracted many gringo buyers in certain areas.

However let me be clear. I have never stated that Ecuador or its real estate is immune to economic downturns.

For example I wrote in March 2010 in an article, Ecuador beach condo review that when the recession hit, sales slowed badly.

Here is en excerpt:

This Ecuador beach condo review helps clarify a question asked about the Vistazul Ecuador beach condos shown here.

Ecuador-beach-condos

A reader sent this note after our recent article entitled Ecuador Timing

Ecuador-beach-condos

Rooftop terrace at Vistazul Ecuador beach condos.

The reader wrote:  Although I have kept up with your various editorials, I am somewhat concerned that the Vistazul project, with favorable infrastructure, location and amenities, has not taken off.  Is this a valid concern?  Thanks for your perspective Tom

My reply can help you understand what a good deal the recession created and share ideas on what to look for when looking for Ecuador real estate.

Ecuador-beach-condos

Vistazul Ecuador beach condo trim.

Here is my reply:

The Vistazul Ecuador beach condo project took off very nicely two years ago. About half the units in the first couple months were  sold. Then the recession hit and as these are more a second home, rather than full time living, destination, sales slowed badly.

Let’s don’t think Ecuador real estate… think value real estate and if Ecuador makes sense as a place to live and or invest for you… look for value within Ecuador’s many real estate markets.

Read the entire Ecuador Beach Condo Review here.

The Best Ecuador Airfare Savings of All

Our last two messages have looked at a reader’s concern that the lowest flight he could find from Denver to Quito was $1,05o. So we have have shared insights from readers on ways they save on airfares to Ecuador. Plus we introduced a two part report on how to find low cost tickets to Quito (linked again below).

These two pages stimulated this response from a reader.

ecuador-tickets

Wow that $550 fare saves $500! It pays to search when looking for flights to Ecuador.

Please see a two part report on how to get low cost tickets to Ecuador at Ecuador Airfare Specials Part 1

and

Ecuador Airfare Specials Part II

There you have it… bits and pieces… questions from you, the readers.  I hope the benefits you gain from these ideas and thoughts we share made my work on a holiday Sunday worthwhile for you.

Gary

Learn about Ecuador, international investing, business and global health secrets at our  June 24-27 Quantum Wealth plus International Investing and Business Course in North Carolina

June 28-29    Ecuador Travel & Andes

June 30-Jul 1 Coastal Real Estate Tour

July 3-4 Imbabura Real Estate Tour

July 6-7   Quito Mindo Real Estate Tour

July 9-10-11     Cuenca Real Estate Tour

Aug. 31-Sept. 1 Ecuador Shamanic Minga

Sept.   2-6   Ecuador Export Tour

Sept.   8-9  Imbabura Real Estate Tour

Sept. 11-12  Coastal Real Estate Tour

Sept. 14-15-16 Cuenca Real Estate Tour

Oct.    7 Quantum Wealth plus International Investing and Business North Carolina

Oct.   8-10   International Investing & Business North Carolina
Oct.   11-12  Travel to Quito and Andean Tour
Oct.  13-14   Imbabura Real Estate Tour
Oct.  16-17   Coastal Real Estate Tour
Oct.  19-20   Quito Real Estate Tour
Oct. 22-23    Cuenca Real Estate Tour

Nov.    4-7   Super Thinking + Spanish Course Florida
Nov.    8-9   Travel to Quito and Andean Tour
Nov. 10-11    Imbabura Real Estate Tour
Nov. 13-14    Coastal Real Estate Tour
Nov. 16-17    Quito Real Estate
Nov. 19-20    Cuenca Real Estate Tour

Dec.   3-5    Ecuador Shamanic Mingo
Dec.   7-8    Imbabura Real Estate Tour
Dec.  10-11   Coastal Real Estate Tour
Dec. 13-14    Quito Real Estate Tour
Dec. 16-17    Cuenca Real Estate Tour